Full-service Strategy To Benefit Indian Telcos

Mumbai: | Updated: Sep 27 2002, 05:30am hrs

In the fast changing world of telecommunications, India is among those markets which present a large number of opportunities, according to Gartner vice-president and research director, Geoff Johnson. While the global economic slowdown has affected the fortunes of the international telecommunications industry, India is in a much better position, the director, who is based in Australia, said in his address at the Nasscon-Gartner Summit in Mumbai.

Overall, market capitalisation to the extent of $2 trillion has been destroyed while share prices have fallen by over 80 per cent, he said. The telecom industry has been passing through a critical phase in the recent past on account of events like the potential bankruptcy of international telecom carrier WorldCom.

He, however, was more optimistic about the Indian market and commended the strategies adopted by the Indian service providers. In the case of India, the service providers are going in for a full-service strategy, he said pointing out that this would help them turn into one-stop shops for all kinds of telecom services.

Citing the examples of telecom majors like Mahanagar Telephone Nigam Ltd (MTNL) and Bharat Sanchar Nigam Ltd (BSNL), he outlined the components of a full service that included broadband access, wireless and convergence among others. The Tatas, through their acquisition in VSNL, and Hughes also have a presence in most areas, said Mr Johnson.

Newer areas like Internet protocol are also emerging which present more opportunities, he added.

Enterprises looking to enter this market should aggressively plan a broadband network and a mobile future based on new lower price points. Price should be viewed as the first and the last issue in this market, he suggested.